X Co. Ltd. purchased assets worth ₹28,80,000. It issued debentures of ₹100 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to vendors is:
Answer & explanation
Correct answer: option 1
The correct answer is option 1- 30,000.
Assets = ₹28,80,000
Issued Debentures of ₹100 each at a discount of 4%.
Discount = 100 x 4/100
= 4
Issue price = 100 - 4
= 96
No of debentures issued = Purchase consideration/Issue price
= 28,80,000/96
= 30,000